We have clients, not customers

The businesses that are paying us are clients, not customers.

Does that surprise you? It shouldn’t. We are, after all, a member of the B2B software market. It’s the same market that created department names such as Client Engagement and Client Success. It was a B2B movement of sorts to distinguish itself from the B2C software market. We couldn’t be held back by more common department names like Customer Service and Customer Support!

Within the walls of Simplifya, we use the terms interchangeably. Honestly, it’s been happening since day one and it bugs the shit out of me. But you have to pick your battles to win the war! Plus, I know I can be overly sticky about word choice. I blame my mother for that.

Anyway, I’m hearing “customer” more often because we have more employees. It makes me want to write this blog post before the next new hire. More than that, I think we make better business decisions when we recognize that we have clients. Brace yourselves, I just decided this is a battle worth fighting!

The Differences

The meanings of “customer” and “client” are actually quite different. I could throw Merriam-Webster links at you, but that’s lazy. I think it’s more helpful to highlight the differences from a business perspective:

A Customer	A Client
Makes buying decisions based on product features	Makes buying decisions based on company reputation
Buys a product and takes receipt immediately	Buys a service and takes receipt over time
Conducts a transaction with the company	Engages in a relationship with the company
Demonstrates satisfaction via repeat purchases	Demonstrates satisfaction via continued relationship
Generally requires less individual attention	Generally requires more individual attention

Of course, it’s not always as left and right as this table implies. For example, I’m sure some clients made buying decisions based on product features. But I’m also sure they gained some level of trust in the company before bothering to consider product features.

While our software is certainly a product with features, it’s better to think of it as a delivery mechanism for our expertise in regulatory compliance.

We are Better When

The point is that we are a stronger company when we understand that we have clients. Clients think and act differently than customers; we should think and act accordingly. To expand on the table above:

• Our reputation precedes our software. If people don’t perceive us to be experts in regulatory compliance, there’s little point in seeing a software demo. Product features are important, but let’s keep them in perspective.
• People need time to experience the value of what we do. It’s not because of the time it takes to conduct audits, perform SOPs, and upload documents. It’s because they have to interact with us and see how we take care of them (support). They have to hear about us from other clients they trust (testimonials). They need the assurance of us delivering on our promise to stay on top of the regulations (accountability). Users have to see the software continue to improve even as the price remains the same (expected value).
• We have a fiduciary obligation to our clients. They are paying us for expertise in regulatory compliance, so we need to demonstrate this expertise on a regular basis. It’s one of the reasons we work hard to create and maintain deep regulatory knowledge and leverage staff with industry creds.
• When we show our compliance expertise, clients continue to pay.  One of the reasons I love building SaaS software is because it’s the ultimate pay-for-performance model. Perform > client happy > get paid. Don’t perform> client not happy > don’t get paid. That’s the bottom line on client satisfaction.
• Different clients have different needs. Our software should look and behave differently by account type (eg, LOs versus ACs). A multi-location client (Cresco Labs) has different needs than a single-location client (Ms. Parker’s Flowers). The things that make an SOP user happy are not the same things that make an audit user happy. The value of our service is a reflection of our ability to cater to these needs while leveraging a single compliance platform.

Clients, Not Customers

So… Simplifya has a Client Engagement Department with Client Engagement Specialists led by a Client Engagement Manager. When we convert a business on trial, it moves from prospect to client. If you have a meeting with Silver Stem, you have a client meeting. If you resolved a problem for a user at Caliva, you provided client support. We want our client service to be world class, so that we can have a worldwide clientele. Right? Right!